Mr Brookes said the carbon tax was the last thing discretionary retailers needed as they struggled to lift sales amid increased saving by consumers, who already faced rising living costs.

“This will add about $3 million to $6 million to our costs," he said. “We will naturally pass those on to consumers. There is no magic pill to reduce supply chain costs."

Australian National Retailers Association chief executive
Margy Osmond
said confidence was king and the government would need to sell its tax well for the sector to emerge from the “economic doldrums".

“Confidence is at a two-year low and retail figures have reflected that. Much of the uncertainty around the carbon price may now lessen, but the negativity of the anti campaign will continue and that may be enough to convince Australians they need to keep saving their pennies," she said.